Whether you’re renovating, holding onto a second home, or waiting for a sale to go through, there are plenty of reasons why your home may be left unoccupied. Vacant homes present their own set of risks and challenges, so you should review your homeowners policy’s vacancy and unoccupancy provisions before leaving the property empty. In this article, we explain when specialized coverage may be appropriate, which policy provisions to review, and how to compare available options.
The Empty Question
A vacant policy is specially designed to protect properties left empty for extended periods. Homeowners policies may restrict coverage when a property is vacant or unoccupied for a specified period; definitions and timeframes vary by policy—if your property remains unoccupied beyond this timeframe, you may need to adjust your coverage. Notifying your insurer about a change in occupancy and following applicable policy conditions can help you understand how coverage may be affected.
Small problems in a house that’s left unoccupied can quickly escalate or go undetected for long periods of time, leading to potentially costly repairs. An empty house is also at a higher risk when it comes to incidents like burglary and vandalism, and issues like water leaks and window cracks, which can cause extensive damage if left unresolved. Vacant-property policies may cover certain losses, but covered causes of loss, limits, deductibles, and exclusions vary by insurer and policy. That said, every policy is different, so always make sure you read your policy jacket for exclusions.
The Flexibility You Need
Depending on the insurer and policy,vacant policies may offer different coverage terms and policy durations. Ask about available policy durations and eligibility requirements based on how long the property will be empty. Compare available policy durations, premiums, coverage limits, and exclusions to find an option suited to your property’s circumstances.
Exclusions to Be Aware Of
Vacant-property policies may include exclusions or restrictions. Review the actual policy terms, including the following potential issues:
- Damage caused by contractors: Ask contractors about their liability insurance and review how your policy addresses renovation work, contractor-caused damage, and related exclusions.
- Theft without signs of forced entry: Coverage for theft depends on the policy wording and circumstances of the loss; review any forced-entry requirements or other theft exclusions.
- Damage during structural work: Problems that arise as a result of ongoing building work may also be excluded.
- Certain water damage scenarios: Not all types of water damage are covered, so check your policy specifics.
In addition to this, vacant-property and builder’s-risk policies may use different valuation methods, including actual cash value or replacement cost, depending on the policy, so make sure you check your policy to be sure.
Security Measures for Unoccupied Properties
Improving security may reduce some risks while the property is unoccupied. Ask your insurer whether any security features affect eligibility or premiums; discounts are not guaranteed. Some recommended measures you should consider are:
- Informing a trusted neighbor: Having someone keep an eye on your property can deter potential intruders. Check your policy’s occupancy, access, and property-maintenance conditions, and ask your insurer about any requirements that apply while the home is unoccupied.
- Installing security systems: Locks, alarms, cameras, and smart doorbells may help deter intruders, but no security measure prevents every incident.
Compare coverage options for Home Insurance in Palm Springs
If your home will be vacant or unoccupied, ask about available insurance options and how the property’s use and condition may affect eligibility and premiums. At Home Insurance Florida, an independent Florida insurance agent working with multiple carriers, we help homeowners explore available vacant-property insurance options and compare policy terms, exclusions, and premiums, subject to carrier eligibility and underwriting. Our team can guide you through the process, helping you review available coverage options for periods of vacancy or unoccupancy, subject to policy terms and eligibility. Explore the Palm Springs home insurance quotes available—get in touch with us today.
